Analysis of Auditors’ Self-Initiated Behaviors and Their Effect on Auditors’ Ability to Detect Fraud

Mehdi Faraji; Aliakbar Farzinfar; Mehdi Safari Gerayli; Hasan Ghodrati

Authors

Mehdi Faraji Ph.D. Student Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran Author https://orcid.org/0009-0007-7512-3370
Aliakbar Farzinfar Assistant Professor Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran https://orcid.org/0000-0002-0998-4478
Mehdi Safari Gerayli Associate Professor Department of accounting, BG.C., Islamic Azad University, Bandargaz, Iran Author https://orcid.org/0000-0003-3431-7869
Hasan Ghodrati Assistant Professor Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran Author https://orcid.org/0000-0001-6209-3335

Keywords:

fraud detection ability, self, initiated behaviors, professional perceptions, contextual requirements, behavioral outputs

Abstract

Auditors’ ability to detect fraud is influenced by various individual and professional factors, and auditors’ self-initiated behaviors may constitute one of the factors associated with this ability. The present study aimed to identify the dimensions of auditors’ self-initiated behaviors and examine their effect on auditors’ ability to detect fraud. In terms of approach, the study was exploratory, and in terms of methodology, it employed a mixed-methods design. In the qualitative phase, the dimensions of self-initiated behaviors were identified using grounded theory through interviews with 16 experts and were subsequently validated using Delphi analysis. In the quantitative phase, data were collected from 395 auditors working in the auditing profession, and the research hypothesis was tested using structural equation modeling (SEM) and SmartPLS 3 software. The qualitative findings resulted in the identification of 4 categories, 12 components, and 82 basic themes. The quantitative findings also demonstrated that auditors’ self-initiated behaviors had a positive and statistically significant effect on auditors’ ability to detect fraud. In addition to extending the behavioral auditing literature, these findings emphasize the importance of considering auditors’ behavioral dimensions in strengthening their ability to detect fraud.

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